Polymarket tops $1 billion revenue amid fresh scrutiny: Reports
Polymarket has reported annualised revenue exceeding $1 billion, marking a milestone just six weeks after opening its regulated United States exchange to the public. The announcement comes as the company faces renewed regulatory scrutiny over its marketing practices, highlighting the contrast between its rapid expansion and growing oversight.
According to CNBC, the prediction market operator said its annualised revenue is now comfortably above the $1 billion mark, driven by strong trading activity on both its newly accessible US platform and its international decentralised exchange.
The surge has been fuelled in part by the ongoing FIFA World Cup, which has increased demand for prediction markets as users place wagers on sporting outcomes. Data cited by CNBC from Dune Analytics showed daily trading volume on Polymarket’s U.S. exchange rising from approximately $50 million in mid-May to more than $200 million on 20 June. International trading activity also reached record weekly volumes after recovering from slower performance during April and May.
The company’s regulated U.S. exchange launched in December but initially operated under a waitlist system. That restriction was removed six weeks ago for mobile users, allowing wider participation. Desktop access has not yet been introduced, and users are currently directed to download the mobile application to trade.
Federal investigation draws new attention
Meanwhile, fresh reports suggest the company has again attracted the attention of U.S. regulators. According to Forbes, citing reports from CNBC and The Wall Street Journal, the CFTC is investigating Polymarket, though the regulator has not publicly confirmed the inquiry.
The reported investigation follows allegations regarding the company’s social media promotional activities. A Wall Street Journal investigation published last week alleged that online content creators, many of them college-aged, shared videos portraying fabricated betting wins to encourage downloads and participation on the platform.
The reports prompted bipartisan concern in Washington. Senators John Curtis of Utah and Adam Schiff of California have written to CFTC Chairman Michael Selig, urging the agency to investigate the company’s promotional practices. The lawmakers argued that the alleged conduct raises questions about whether prediction markets are increasingly resembling gambling rather than financial markets designed for hedging or price discovery, Forbes reported.
The reported investigation would represent the first major enforcement action involving a prediction market during Selig’s tenure as CFTC chairman, following his support for the sector.
Lawsuit adds to legal pressure
Polymarket is also facing civil litigation alongside the reported regulatory investigation. Forbes reported that a consumer advocacy organisation has filed a lawsuit against the company, its chief executive, Shayne Coplan, and its chief marketing officer, Matthew Modabber. The complaint alleges that the company used layered marketing tactics designed to target college students through deceptive advertising campaigns.
Industry growth continues
Polymarket has emerged as one of the sector’s leading operators, driven by increased public interest during recent election cycles and major sporting events. The company’s valuation rose after receiving a $2 billion investment from the parent company of the New York Stock Exchange, bringing its reported valuation to $9 billion, according to Forbes.
Competition within the industry has also intensified. Rival prediction market operator Kalshi has secured multiple funding rounds and has continued to expand under a regulatory framework that has received support from the current U.S. administration.
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